mwc15 spectrum seminar. mike wright. telstra presentation
TRANSCRIPT
GSMA Seminar Theatre 2015Mobile – Wi-Fi
Is there room for both licensed and unlicensed
networks?
The benefits of aligning industry and
governments on spectrum management Mike Wright, Group Managing Director
Networks, Telstra
Spectrum is the lifeblood of our networks. With it also comes the complexities of planning, building and optimising the investment in networks.
Carriers and Governments need to work together on jointly understanding and navigating the best outcomes for the community.
Page 4
TELSTRA HAS A CLEAR SPECTRUM STRATEGY AND ONE OF THE MOST ADVANCED NETWORKS
5
The development of a comprehensive spectrum strategy requires an in depth understanding of
future trends, development and promotion of industry standards, and close consultation with
regulators.
HSPA
(550Kbp-3Mbps)
HSPA+
(550Kbps- 8Mbps)
HSPA+DUAL CHANNEL
(1.1Mbps-20Mbps)
LTE
Cat 3/4
1800
(2Mbps-50Mbps)
LTE-A
Cat 6CARRIER AGGREGATION
1800/700
(2Mbps-100Mbps)
LTE-A
Cat 9CARRIER AGGREGATION
1800/700/
2600
150Mbps^
300Mbps^
450Mbps^WORLD
FIRST
WORLD
FIRST
WORLD
FIRST
WORLD
FIRST
3G
8502 X 10-15MHz
3G/4G
21002 x 10-
15MHz
4G
1800
2 x 15-20MHz
4G
700
2 x 20MHz
4G
2600
2 x 40MHz
2011 2015
2G/4G
900
2 x 8.3MHz
Presentation Title | Presenter Name | Date Page 6
UNDERSTANDING DEMAND: Allows optimisation of traffic balance and investment returns. 4G traffic now exceeds 3G
4G
3G
4G+3G
2G traffic has reduced
to very low levels and
will close end 2016
Flexible spectrum
rules allowed
LTE1800 to launch in
Sept 2011.
Careful balance of 3G
to not overinvest and
to extract value from
earlier investment
Presentation Title | Presenter Name | Date Page 7
OPTIMISING USE OF SPECTRUM AND TECHNOLOGY EVOLUTION ALLOWS LOWER COST TO HELP OFFSET GREATER DEMAND
$-
$100
$200
$300
$400
$500
$600
$700
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Wireless Data Product Unit Cost (PUC) - $/GB
42 Mbps
(DC-HSPA)
introduced 2012 2013 2014 2015 2016 2017
21 Mbps
(64QAM)
introduced
LTE1800
Introduced
NextG
commissioned
October 2006
LTE700
Introduced.
2 carrier CA,
300Mbps)4x2MIMO
Planned Q4FY15.
30% efficiency gain,
lower unit cost
3 carrier CA
planned Q4FY15,
450Mbps
FY16 plan Small
cells to increase
capacity and
economically
extend coverage.
VoWiFi as low
cost indoors
coverage
solution
In Australia, the Australian Communications
and Media Authority (ACMA) manages
spectrum.
Telstra has a strong and effective working
relationship with the ACMA on the development
of spectrum strategy.
In September 2014, the ACMA launched the
Five-year Spectrum Outlook providing greater
insight and transparency for spectrum users.
The document provides some clarity on how the
increase in demand for spectrum will be
managed across all industries.
Presentation Title | Presenter Name | Date Page 8
BY WORKING WITH CARRIERS GOVERNMENTS CAN GAIN SUFFICIENT FUTURE VISION TO ALLOW CUSTOMER DEMAND TO BE MET AS IT ARISES
In 2013 Telstra invested $1.3 billion on 2x20MHz of APT700 and 2x40 MHz of
2600MHz.
This spectrum will enable management of data demand well into the future.
Whilst formal access to APT700 was planned for 1 Jan 2015, many of the Analog TV
channels have been closed and bands re-stacked well before.
Telstra worked with the ACMA to secure early access licences in many areas under
a set of clear set of conditions including:
• community consultation, notification to all levels of Government, advertisements
in newspapers, a dedicated web page and extensive testing to ensure wireless
audio devices (which use the same or similar spectrum) were not impacted.
Though this process, we were able to launch a superior APT700 4G service in parts
of all major capital cities and 50 regional centres up to 6 months early.
Presentation Title | Presenter Name | Date Page 9
EFFECTIVE AND TRANSPARENT PROCESSES ENABLED EARLY DEPLOYMENT OF APT700
Page 10
Spectrum pricing and policies vary widely and are inconsistent worldwide
$ 0.00
$ 0.50
$ 1.00
$ 1.50
$ 2.00
$ 2.50
$ 3.00
400
500
600
700
800
900
100
0
110
0
120
0
130
0
140
0
150
0
160
0
170
0
180
0
190
0
200
0
210
0
220
0
230
0
240
0
250
0
260
0
270
0
$/M
Hz/P
op
($
US
)
Frequency Band (MHz)
AWS-3
(USA 2015)
APT700
(Australia
2013)
3.4
3.5
3.6
3.7
3.8
3.9 4
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9 5
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8
5.9 6
6.1
6.2
Frequency Band (GHz)
FREE !
Spectrum Auction prices in Various Bands (2010-2015) + WiFi
EXPENSIVE
Presentation Title | Presenter Name | Date Page 11
GOVERNMENTS AROUND THE WORLD NEED TO BE CLEAR ON PLANS & INTENT FOR SPECTRUM PRICING
Extracting very high prices for licenced spectrum has a consequence:
• Operators have less capital to invest in network rollouts so consumers get a
poorer service and the economy fails to get the productivity benefit of a connected
and mobile broadband world.
• Costs get passed on to consumers.
Unlicensed spectrum has a benefit but it isn’t a cure all:
• Unlicensed spectrum provides a great benefit in wireless connectivity and
convenience in local areas and for innovative applications.
• Unlicensed spectrum is not a replacement for planned and managed networks.
• Free networks are not free, even on unlicensed as someone pays to build and
maintain or else they congest or deteriorate.
Too much focus on unlicensed/ free spectrum has a consequence.
• The allure of free can distort investment and markets so there needs to be a
balanced and clear communication of intent.
Thank you